South Korea opens probe into Teo Siong Seng’s Singamas and peers over alleged price-fixing: report

[SINGAPORE] The South Korean anti-competition watchdog is said to have opened an investigation into Singapore shipping veteran Teo Siong Seng’s Singamas Container and three other container makers over alleged price-fixing.

The Korea Economic Daily Global reported on Tuesday (Jul 7) that the Korea Fair Trade Commission is probing some of the world’s largest container makers after the companies were charged by the United States with conspiring to restrict output and inflating prices of the steel boxes used for ocean shipping during the pandemic.

The authority is investigating whether Singamas and three Chinese companies China International Marine Containers (CIMC), Shanghai Universal Logistics Equipment and CXIC Group Containers breached South Korean competition law.

South Korea is reportedly the first nation, besides the US, that is looking into this alleged cartel. The Business Times has e-mailed the Korea Fair Trade Commission.

Singapore shipping veteran Teo – the chairman and CEO of Hong Kong-listed Singamas – and representatives of CIMC, Shanghai Universal Logistics Equipment and CXIC were first charged by the US Department of Justice over their roles in allegedly coordinating production of standard dry containers.

The criminal case is still pending. However, first class-action suits have since been filed by container buyers against these container makers and their executives, seeking damages, restitution and disgorgement of profits.